Hi and welcome to Just Answer!See instructions - last page - http://www.irs.gov/pub/irs-pdf/i1099k.pdfException for de minimis payments. A TPSO is required to report any information concerning third party network transactions of any participating payee only if for the calendar year:1. The gross amount of total reportable payment transactions exceeds $20,000, and2. The total number of such transactions exceeds 200.So far - if the total number of transactions is less than 200 - form 1099K is not issued - and there is nothing to worry.
Thank you for your answer. the fact is that I already charge 19.000 and is May, so I need to keep charging the credit card
I want to keep using the merchant account to process my payments but I don't think I should pay taxes for a business related to my I visa as a foreign media representative. But some processors only accept 1099K form not W8BEN. So if I receive the 1099K that means that I would have to pay, or I can reply with a W8BEN?
As long as the total number of transactions on your account will be less than 200 - there will not be 1099K form.Assuming you are receiving wages every week - that will result in 52 transaction - and form 1099K will not be sent to you.
Yes but I will have charged more than 20.000 USD by next week
So I will do receive that form next year.
Only transactions that money are paid to you are counted. Transaction that you pay to others are not counted.
I think you didn't understand my question. I am the one getting paid for my services. I already received 19.000
There are two items which trigger reporting requirements - (1) total amount AND (2) number of transactions.I understand that your total amount will be more than $20,000. However will the total number of payments that you receive be more than 200 during the year?
Nop, but you receive the form if you get payments for more than 20.000 OR more than 200 transactions, not AND more than 200 transactions.
I referenced instructions above. A TPSO is required to report any information concerning third party network transactions of any participating payee only if for the calendar year:1. The gross amount of total reportable payment transactions exceeds $20,000, and2. The total number of such transactions exceeds 200.Thus if either is not true - no reporting requirements.
Ok so what would be the case if I exceed the 20K and the 200 transactions and receive the form?
That is correct. The purpose of such reporting to track businesses which are selling goods and have large number of sale transactions - more than 200.Assuming you are receiving wages every week - that will result in 52 transaction - and form 1099K will not be sent to you.
However 1099K is informational return - it help the IRS to track income - but that doesn't mean - that amount is taxable.
Ok cool, so then I would be able to send another form like W8BEN stating that I am not a us citizen or resident?
Or do you think I would have to double pay taxes
The form W8BEN is used if you receive payments from US payer to avoid withholding. Since your payments are coming from a foreign payer - there is no need to use this form - unless you are specifically asked to sign this form.
Ah ok, so you think that after receiving that form 1099k I shouldnt receive anything else?
I do not think that you will receive 1099K because the number of transactions will be less than 200.
And if I do, I have to do something
If you are a resident alien - you need to report all your worldwide income.If you are a nonresident alien - you are taxed ONLY on income from US sources.So - you need to determine (1) your residency status and (2) source of your income.
1. I am not an alien2. My source of income is international (from Argentina)So how would I have to report this to the irs?
If you are a nonresident alien and do not have income from US sources - you are not required to file your US tax return and there is nothing for you to report.If the IRS specifically ask you - you will reply and explain - otherwise - there is nothing for you to report.
Great then, thank you very much for the advise. Good night !